Market Soapbox 10/01/08
WEN, bailout wait DJIA -20 on average volume with poor internals. All DOWN cept DJUA, XAU.
Bonds down +1bps 10 yr 3.81, $ up vs 1.3964€ & vs 106.155y, WTI -1% $99.98, gold -1% $875.3, TED spread UP +20bps 3.35%.
SP500 1164, dive to 1140, rise to 1167, close 1161. NDX 1584, dive to 1547, close 1563.
FRI: the largest bank failure in US history; FDIC seized WaMu.
The economy has been contracting 3 straight quarters and the true ugliness has just begun.
MON: The unwind into chaos... congress rejects the unnecessary bailout dubbed the "emergency economic stabilization act" 228-205, the street panics.
Fortis on the verge of collapse is Nationalised with a $16 billion bailout. Wachovia collapses, Citigroup buys the remains for $2 billion or $1 per share.
TUE: month & quarter end short covering gets 3rd largest point gain ever. 3 month Libor widening at 4.05; overnight LIBOR spikes 431 basis points to 6.88%
These bailouts are not free market capitalism, they are the rape of our democracy and the larceny of our childrens future for the folly of a rich and priveledged few.
Today, the waiting game...
Auto sales: Toyota -32%; Honda -24%; Nissan -37%; 11th straight decline, longest in 17 years. ISM manufacturing still contracting 43.5 vs 49.5.
IBM -6%; Ford -13%; Go back to school? Sallie Mae, #1 student lender, -32% today, ready for default.
Truth or consequences: GE on the ropes, selling $12 billion in stock and $3 billion preferred at 10% to Warren Buffet.
Former U.S. Treasury Secretary Paul O'Neill on Hank the Skanks $700 billion bank buddie bailout:
Doesn't this seem like lunacy to you? The consequences of it are unbelievably bad in terms of public intrusion into the private sector.
Is anybody thinking there? It's too late, it's not going to make any difference and it's aggravating as hell when there's a better idea and you can't even get it in play.
We natter: Sound familiar? Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds down +1bps 10 yr 3.81, $ up vs 1.3964€ & vs 106.155y, WTI -1% $99.98, gold -1% $875.3, TED spread UP +20bps 3.35%.
SP500 1164, dive to 1140, rise to 1167, close 1161. NDX 1584, dive to 1547, close 1563.
FRI: the largest bank failure in US history; FDIC seized WaMu.
The economy has been contracting 3 straight quarters and the true ugliness has just begun.
MON: The unwind into chaos... congress rejects the unnecessary bailout dubbed the "emergency economic stabilization act" 228-205, the street panics.
Fortis on the verge of collapse is Nationalised with a $16 billion bailout. Wachovia collapses, Citigroup buys the remains for $2 billion or $1 per share.
TUE: month & quarter end short covering gets 3rd largest point gain ever. 3 month Libor widening at 4.05; overnight LIBOR spikes 431 basis points to 6.88%
These bailouts are not free market capitalism, they are the rape of our democracy and the larceny of our childrens future for the folly of a rich and priveledged few.
Today, the waiting game...
Auto sales: Toyota -32%; Honda -24%; Nissan -37%; 11th straight decline, longest in 17 years. ISM manufacturing still contracting 43.5 vs 49.5.
IBM -6%; Ford -13%; Go back to school? Sallie Mae, #1 student lender, -32% today, ready for default.
Truth or consequences: GE on the ropes, selling $12 billion in stock and $3 billion preferred at 10% to Warren Buffet.
Former U.S. Treasury Secretary Paul O'Neill on Hank the Skanks $700 billion bank buddie bailout:
Doesn't this seem like lunacy to you? The consequences of it are unbelievably bad in terms of public intrusion into the private sector.
Is anybody thinking there? It's too late, it's not going to make any difference and it's aggravating as hell when there's a better idea and you can't even get it in play.
We natter: Sound familiar? Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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